SolarCity Corporation Announces Amendment to Credit Agreement with Bank of America, N.A
Jun 26 15
On June 24, 2015, SolarCity Corporation, Bank of America, N.A., as administrative agent and the lenders from time to time party thereto entered into a sixth amendment to that certain Amended and Restated Credit Agreement, dated November 1, 2013, among the Company, the Administrative Agent and the Lenders, and as previously amended. Amendment No. 6 amends the Company's secured revolving credit facility to, among other things, (a) allow for the increase of the maximum size of the Credit Facility to $300 million, subject to certain conditions, (b) increase the Short-Term Solar Bond Issuance limit to $250 million, subject to certain limitations, and increase the total Solar Bond Issuance limit to $350 million, (c) remove the requirement to provide separate Short-Term Solar Bonds Credit Support, and allow instead to support Short-Term Solar Bonds with the Borrowing Base, (d) increase the Capital Expenditure limit to $350 million, (e) increase the Letter of Credit Sublimit to $60 million, (f) change the Unencumbered Liquidity covenant to cover Short-Term Solar Bonds in addition to Aggregate Commitments, (g) clarify covenants regarding Acquisitions of Developer Projects, and (h) increase the general Dispositions limit to $25 million. In connection with Amendment No. 6, the Company has increased the amount of Solar Bonds available for sale and issuance pursuant to its Solar Bonds Program from $200 million to up to $350 million in aggregate principal amount of Solar Bonds. On June 26, 2015, the Company initiated the offer and sale of its 2.00% Solar Bonds, Series 2015/16-1 pursuant to the Company's previously announced Solar Bond Program. The 2015/16-1 Solar Bonds will mature on June 26, 2016 and bear interest at a rate of 2.00%. The Company will initially offer an aggregate principal amount of up to $90,000,000 of the 2015/16-1 Solar Bonds. However, the Company may increase the maximum principal amount of the 2015/16-1 Solar Bonds offered by the Company from time to time, in its sole discretion. The 2015/16-1 Solar Bonds will be issued pursuant to an indenture, dated as of October 15, 2014, by and between the Company and U.S. Bank National Association, as trustee, as supplemented by a supplemental indenture, dated as of June 26, 2015, by and between the Company and the Trustee, related to such 2015/16-1 Solar Bonds. The company anticipates that Space Exploration Technologies Corporation (SpaceX) will purchase $75,000,000 in aggregate principal amount of the 2015/16-1 Solar Bonds. Elon Musk, the Chairman of Board of Directors, is the Chief Executive Officer, Chief Designer, Chairman and a significant stockholder of SpaceX. Antonio Gracias, a member of Board of Directors, is a member of the Board of Directors and a significant stockholder of SpaceX. John H.N. Fisher, a member of Board of Directors, is a significant stockholder of SpaceX. In addition, the following related persons also hold shares in SpaceX: Lyndon Rive, co-founder, Chief Executive Officer and a member of Board of Directors; Peter Rive, co-founder, Chief Technology Officer and a member of Board of Directors; Nancy Pfund and J.B. Straubel, members of Board of Directors; and Hayes Barnard, Chief Revenue Officer. The 2015/16-1 Solar Bonds will be senior unsecured obligations of the Company. In addition, the occurrence of certain events will result in an Event of Default" with respect to the 2015/16-1 Solar Bonds, which may result in the acceleration of the maturity of the 2015/16-1 Solar Bonds.
SolarCity and Sunrise Energy Ventures Announces to Create New Community Solar Program
Jun 17 15
SolarCity and Sunrise Energy Ventures announced have partnered to create a new community solar program offering that allows renters, schools, municipalities and other current Xcel Energy customers to purchase renewable energy without installing solar panels on their properties. Minnesota's new community solar program is mandated by law and is expected to be the large in the nation when completed. Solar City's new community solar program will develop a series of up to one-hundred 1MW(AC) community solar installations, or "gardens," in Wright and Sherburne counties. SolarCity will then invite renters, low-income housing residents, schools, and others in the Minneapolis-St. Paul area to enter subscriber agreements to purchase the solar power the gardens produce at a rate of 13 cents per kWh. For up to 25 years, Xcel Energy will credit the subscribers at a rate of 14.7 kWh for each kWh of electricity that is purchased from the company through a solar garden subscriber agreement. The anticipated 11.5% savings will be immediate for subscribers, who will remain Xcel Energy customers. SolarCity will develop, operate and own the gardens and expects to hire local installation and operations personnel to build the projects. The company plans to reserve the majority of the gardens' residential allocations in order to give some of the 600,000 apartment renters in Minnesota access to affordable solar power. Community solar can also appeal to homeowners who have heavily shaded or north-facing roofs or those who do not want to make an up-front financial investment in a rooftop system.
SolarCity Corp. Offers $40 Million of Solar Bonds
Jun 12 15
SolarCity Corp. announced that it is offering four series of its solar bonds, totaling $35 million. The offering consists of $10.0 million of 2.65% solar bonds, series 2015/C46-3, due June 18, 2018; $10.0 million of 3.60% solar bonds, series 2015/C47-5, due June 18, 2020; $10.0 million of 4.70% solar bonds, series 2015/C48-10, due June 18, 2025; and $5.0 million of 5.45% solar bonds, series 2015/C49-15, due June 18, 2030.